Bells & whistles: The society says many economists predict that violent house price fluctuations have ended, while the Council for Mortgage Lenders predicts house price inflation of 6 per cent in 2001 and 5 per cent in 2002. The Newcastle claims the RESI bonds offer 'an innovative method of investing in residential property with no risk of capital loss'.

How it works: RESI Bond issue 4 pays a guaranteed return of 7.5 per cent gross a year until 31 October 2002, plus 50 per cent of the growth of the Halifax House Price Index over the three-year term (until 31 October 2003), based on the original amount invested. Interest is paid on 1 November. Issue 5 pays a return equal to 200 per cent of the growth in the Halifax House Price Index over the three-year term from 1 November 2000 to 31 October 2003. If house prices fall over the term, you still get all your capital back.

Minimum: £5,000.

Charges: Built into the product.

Tax: Interest is paid net of tax.

Risk: Issue 4 - low, Issue 5 - medium.

Should you buy it? Amanda Davidson of London independent financial adviser Holden Meehan likes issue 4: 'The 7.5 per cent gross guaranteed for two years is a good rate, only leaving your return in year three at any risk. Issue 5 offers no guarantees, and as house prices have been high, you could be investing at a time when they could reduce or at least slow down.' Chris Wicks of Glossop firm Bridgewater Financial Planning says: 'You wouldn't want to invest in equities over three years, so this is not a bad place to put your money. However, I would go for Issue 4 rather than Issue 5.'